Lego builds profits on toy line aimed at girls

Olaf Kraak/EPALego today reported a surge in quarterly profits on the strength of sales to new toys designed for girls.

Lego A/S profit rose 36 percent in the first half of the year as sales of new building-block sets for girls surged and as Europe’s biggest toymaker grabbed global market share.

Net income climbed to 2.02 billion kroner ($338 million) from 1.48 billion kroner a year earlier, the Billund, Denmark- based company said today in a statement. Revenue rose 24 percent to 9.13 billion kroner.

The “Lego Friends” series, introduced in January in most markets, is Lego’s sixth attempt over the years to target girls and the “most significant” new product in a decade, according to Chief Executive Officer Joergen Vig Knudstorp. Lego said today that it had sold twice as many of the sets as expected and will increase production for the Christmas season, hiring 1,000 more workers this year.

“Lego Friends is a result of four years’ development, and it has been amazing to experience the enthusiastic welcome that consumers have given the new range,” Knudstorp said today in a statement. “Sales have been quite astonishing.”

Lego, which is closely held, said it boosted its global market share to more than 8 percent in the first half, a 1 percentage point gain from a year earlier.

The global toy market has contracted about 4 percent in the first six months of 2012, Lego said.

Mattel Inc., the world’s largest toymaker, on July 17 reported a 1.2 percent decline in first half revenue. Hasbro Inc., the world’s second-largest, on July 23 said sales declined 7.6 percent in the period.